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Digital assets and currencies

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Finance

Accrual accounting in the public sector

Accrual accounting in the public sector is a method to present financial information on government operations.

Fiat currencies

Bank reserves

Bank reserves are a commercial bank's cash holdings physically held by the bank, and deposits held in the bank's account with the central bank. In most countries, the central bank may set minimum reserve requirements that mandate commercial banks under their purview to hold cash or deposits at the central bank equivalent to at least a prescribed percentage of their liabilities, such as c

Fiat currencies

Carbon quantitative easing

Carbon quantitative easing (CQE) is an unconventional monetary policy or monetary program that is featured in a proposed international climate policy, called a global carbon reward or simply, the carbon reward. The main goal of CQE is to guarantee the price floor of a carbon reward market so that this market can scale to decarbonise the world economy. The market instrument is also called

Banking

Lender of last resort

In public finance, a lender of last resort (LOLR) is a financial entity, generally a central bank, that acts as the provider of liquidity to a financial institution which finds itself unable to obtain sufficient liquidity in the interbank lending market when other facilities or such sources have been exhausted. It functions as a government guarantee of liquidity to financial institutions

Fiat currencies

Monetary base

In economics, the monetary base (also base money, money base, high-powered money, reserve money, outside money, central bank money or, in the UK, narrow money) in a country is the total amount of money created by the central bank. This includes:

Trading basics

Money illusion

In economics, money illusion, or price illusion, is a cognitive bias where money is thought of in nominal, rather than real terms. In other words, the face value (nominal value) of money is mistaken for its purchasing power (real value) at a previous point in time. Viewing purchasing power as measured by the nominal value is false, as modern fiat currencies have no intrinsic value and th

Fiat currencies

Negative interest on excess reserves

Negative interest on excess reserves is an instrument of unconventional monetary policy applied by central banks to encourage lending by making it costly for commercial banks to hold their excess reserves at central banks so they will lend more readily to the private sector. Such a policy is usually a response to very slow economic growth, deflation, and deleveraging.

Trading basics

Nonrecourse debt

Nonrecourse debt or a nonrecourse loan (sometimes hyphenated as non-recourse) is a secured loan (debt) that is secured by a pledge of collateral, typically real property, but for which the borrower is not personally liable. If the borrower defaults, the lender can seize and sell the collateral, but if the collateral sells for less than the debt, the lender cannot seek that deficiency ba

Fiat currencies

Taxpayers' money

Taxpayers' money or taxpayer dollars is a phrase that supposes government spending is dispersed from an aggregation of tax revenues, and emphasises a putative cohort of taxpayers from whom said revenue is collected. The phrase is associated with Margaret Thatcher, who asserted in 1983 that "the state has no source of money, other than the money people earn themselves. If the state wishes

Finance

Wagner's law

Wagner's law, also known as the law of increasing state activity, is the observation that public expenditure increases as national income rises. It is named after the German economist Adolph Wagner (1835–1917), who first observed the effect in his own country and then for other countries.